According to Zhitong Finance APP, Hong Kong stocks continued to decline today, with all three major indices in the red, but holding steady above the 25,000 mark. By the close, the Hang Seng Index fell 0.98% or 249.25 points, closing at 25,270.07 points, with a total turnover of HKD 312.687 billion; the Hang Seng China Enterprises Index fell 0.98%, closing at 9,039.09 points; the Hang Seng Tech Index fell 0.59%, closing at 5,543.17 points.
Industrial Securities believes that the Hong Kong stock market in August is experiencing a volatile divergence, or in other words, is poised for a breakout. The short-term market is more focused on interim report performance and cost-effectiveness, while Sino-U.S. trade negotiations and fluctuations in U.S. stocks may bring volatility and divergence to Hong Kong stocks. Thematic speculation may enter a period of declining risk appetite, with targets that have performance certainty being more favored. In the medium to short term, the judgment remains that the Hong Kong stock market will fluctuate upwards in the second half of the year, continuously reaching new highs. A rate cut by the Federal Reserve may just be a matter of time, focusing on the further stimulating momentum of liquidity in Hong Kong stocks from the Fed's rate cuts and a weakening U.S. dollar.
<h2>Blue Chip Performance</h2>
JD HEALTH (06618) leads the blue chips. By the close, it rose 11.67%, closing at HKD 61.25, with a turnover of HKD 299 million, contributing 11.31 points to the Hang Seng Index. CICC stated that the company's 25H1 performance exceeded market expectations, mainly due to good growth in drug categories, with strong performance in its core business, driven by steady growth in drug categories. The firm estimates that in 2Q25, the single-quarter revenue will reach HKD 18.65 billion (+23.7% YoY), and expects that the instant retail investment activities conducted by JD Group during 1H25 may indirectly benefit JD HEALTH by driving traffic; as of the end of 1H25, the company had over 200 million active users in the past twelve months (LTM), setting a new historical high. At the same time, it is expected that the drug category will achieve a growth rate higher than the overall revenue during 1H25, remaining the core driving category.
In other blue chip stocks, Xinyi Solar (00968) rose 5.96%, closing at HKD 3.38, contributing 1.37 points to the Hang Seng Index; Alibaba Health (00241) rose 4.92%, closing at HKD 5.33, contributing 2.51 points to the Hang Seng Index; Sun Hung Kai Properties (00016) fell 5.35%, closing at HKD 92, dragging down the Hang Seng Index by 11.88 points; Henderson Land Development (00012) fell 4.63%, closing at HKD 27.6, dragging down the Hang Seng Index by 3.07 points.
<h2>Popular Sectors</h2>
On the market, JD HEALTH recently announced impressive interim performance, leading the internet medical stocks with Dingdang Health. The margin balance for margin trading has recently reached a new high, with Chinese brokerage firms showing strong gains. Reports indicate that photovoltaic components are experiencing shortages and price increases, with photovoltaic stocks generally rising, as institutions previously indicated that the price end of the industry chain has achieved preliminary results. On the other hand, the Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission issued a joint statement regarding the volatility of the stablecoin-related market, which affected most stablecoin concept stocks, leading to declines. Additionally, the semiconductor and Apple concepts continued to rise, while domestic banks and cryptocurrencies corrected.
1. Internet medical stocks rise against the trend. By the close, Dingdang Health (09886) rose 36.07%, closing at HKD 0.83; JD HEALTH (06618) rose 11.67%, closing at HKD 61.25; Alibaba Health (00241) rose 4.92%, closing at HKD 5.33; ZhongAn Online (06060) rose 3.25%, closing at HKD 19.05
JD HEALTH announced its interim results today, with component stock Dingdang Health leading the rise in internet medical stocks. Credit Lyonnais released a research report stating that JD HEALTH's performance in the first half of the year met expectations, with revenue increasing by 24.5% year-on-year to 35.3 billion yuan, driven by strong performance during the 618 shopping festival and robust user growth. Ebit increased by 57% year-on-year to 2.5 billion yuan. Due to the shift in demand for original research drugs from hospitals to outside hospitals, drug sales also saw growth. CICC stated that the company's 25H1 performance exceeded market expectations, mainly due to good catalyst for drug categories and strong performance in core business, with drug categories driving steady growth.
Guosen Securities believes that the AI medical and AI pharmaceutical markets have huge potential and are among the most important application areas for AI technology. Considering the extremely high valuations of some overseas AI pharmaceutical/medical benchmark companies, the domestic AI pharmaceutical/medical field has broad prospects and imagination. CITIC Securities stated that the overall performance expectations of listed companies in the medical and health industry in the previous quarter were relatively stable, predicting that the overall revenue, profit, and cash flow of related companies will steadily recover and improve throughout the year. Thanks to the optimization of policies such as centralized procurement, promotion by commercial insurance, and AI empowerment, the sector is expected to welcome a revaluation and the catalysts are expected to continue throughout the year.
2. Chinese brokerage stocks have risen significantly and have been strengthening recently. As of the close, CITIC Securities (06066) rose 10.98% to HKD 15.16; Zhongzhou Securities (01375) rose 9.03% to HKD 3.02; CICC (03908) rose 8.5% to HKD 22.98; Guolian Minsheng (01456) rose 7.4% to HKD 7.11.
In terms of news, July financial data showed that deposits in non-banking financial institutions increased significantly by 2.14 trillion yuan, a year-on-year increase of 1.39 trillion yuan, reflecting structural changes in the flow of funds, with residents' funds being transferred to the financial market through various channels. Xiao Jinchuan, macro joint chief analyst at Huaxi Securities, stated that due to the growth rate of wealth management scale in July not matching that of the same period last year, coupled with the reduction in deposit interest rates in May this year, some funds may have flowed out of residents' deposits and shifted to non-banking financial institutions, becoming potential incremental funds flowing into the stock market, bond market, and futures market.
In addition, the balance of margin financing has once again surpassed the 2 trillion yuan mark, reaching a new high in ten years, with market trading sentiment at a high level. Guotai Junan believes that marginally, the pace of equity financing in A-shares has improved, the Hong Kong stock market remains active with significant year-on-year boosts, and leading brokerages with advantages in corporate client resources, professional service capabilities, and cross-border service capabilities are expected to maintain their leading position in the evolution of the investment banking business ecosystem. A new round of reform measures on the financing side is accelerating implementation.
3. Solar stocks generally rose. As of the close, Xinyi Solar (00968) rose 8.15% to HKD 3.45; Flat Glass Group (06865) rose 6.88% to HKD 10.88; GCL-Poly Energy (03800) rose 6.96% to HKD 1.23; Xinte Energy (01799) rose 6.6% to HKD 6.95; and LONGi Green Energy (01108) rose 5.12% to HKD 4.93
According to the Economic Observer, after experiencing a &#34;rush to install&#34; triggered by the National Development and Reform Commission and the National Energy Administration's issuance of the &#34;Notice on Deepening the Market-oriented Reform of New Energy Grid Connection Prices to Promote High-quality Development of New Energy&#34; at the beginning of the year, the photovoltaic module market saw shortages and price increases again in August. Multiple distributors indicated that the reasons for this round of shortages and price increases differ from the &#34;rush to install&#34; in the first half of the year: during the &#34;rush to install,&#34; the main reason was strong downstream demand requiring quick delivery, while this round did not see a significant increase in downstream module demand. The core reason for the price increase stems from the rising prices of upstream polysilicon materials under the &#34;anti-involution&#34; backdrop, compounded by some manufacturers having smaller production capacities and being unable to deliver on time.
CITIC Construction Investment previously pointed out that the photovoltaic industry has recently achieved initial results in regulating sales below cost, with prices along the industrial chain for silicon materials, wafers, and cells successfully aligning with costs. The focus will now shift to the pricing situation at the module end. It is estimated that a 40% operating rate corresponds to a total cost of silicon materials of about 47,000-63,000 yuan/ton. Under the restriction of &#34;not selling below total cost,&#34; the cost side provides strong support for current prices, significantly weakening the competitiveness of high-cost enterprises, and outdated production capacity will gradually exit.
4. Most stablecoin concepts declined. As of the close, Yao Cai Securities Financial (01428) fell 7.91% to HKD 12.8; Lianlian Digital (02598) fell 2.7% to HKD 10.08; Victory Securities (08540) fell 1.82% to HKD 7; Delin Holdings (01709) fell 1.89% to HKD 3.12.
On the evening of August 14, the Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission issued a joint statement regarding market fluctuations related to stablecoins. The statement noted that the Hong Kong Monetary Authority and the Hong Kong Securities and Futures Commission have observed recent market fluctuations associated with stablecoin concepts. These fluctuations appear to stem from announcements, news, social media posts, or market speculation related to plans to apply for stablecoin issuer licenses in Hong Kong, engage in related activities, or explore the feasibility of such plans.
In response to claims of recent contact with Hong Kong financial regulatory authorities, the Monetary Authority reiterated that it would adopt a prudent and cautious approach when considering applications for stablecoin issuer licenses and set higher thresholds. The Monetary Authority emphasized that expressing intent or submitting a stablecoin license application, as well as communication with relevant institutions, is merely part of the application process, and whether a license is ultimately granted will depend on whether the application meets the licensing conditions.
<h2>Popular Active Stocks</h2>
INNOGEN-B (02591) surged on its first listing, closing up 206.48% at HKD 57.25, with a transaction volume of HKD 978 million.
The weight-loss drug concept INNOGEN-B had a significant opening on its first listing today, at one point rising over 280% during the session. During the subscription period, INNOGEN-B was oversubscribed by 5,340 times, ranking second among this year's new stocks in terms of oversubscription, reflecting the capital market's attention to the GLP-1 drug sector and the endocrine disease treatment market. It is worth mentioning that recently, Peijie Biopharmaceutical (02565) has also seen a wave of stock price increases, with its current market value in Hong Kong dollars still having significant room compared to the market value of its peer INNOGEN, highlighting the market's recognition of the long-term value of this company
Likang Technology (00558) saw strong volume throughout the day, closing up 46.02% at HKD 6.79, with a turnover of HKD 2.476 billion.
In terms of news, Likang Technology recently signed a strategic cooperation agreement with four companies specializing in magnesium alloy and humanoid robot research and development, officially launching a joint R&amp;D project for magnesium alloy humanoid robots. This project focuses on integrated innovation around &#34;materials-structure-process,&#34; aiming to break through the traditional weight and strength bottlenecks of robots, achieving a dual revolution in structural lightweighting and manufacturing efficiency. Likang Technology will leverage its leading technology in magnesium alloy forming to provide advanced forming equipment and process solutions for the project, aiding in the lightweight breakthrough of robot structures.
Yuan Da China (02789) performed well after a profit warning, closing up 84.34% at HKD 0.153, with a turnover of HKD 13.6953 million.
Yuan Da China issued a profit warning, expecting to achieve a net profit of approximately HKD 150 million to HKD 210 million in the first half of 2025, compared to a net profit of HKD 6 million in the same period of 2024. The announcement stated that the main reason for the net profit growth is the good progress of the group's internationalization strategy during this period, with significant contributions from overseas market orders, resulting in revenue growth compared to the same period in 2024, as well as an increase in foreign exchange gains compared to the same period in 2024.
Jinhai Medical Technology (02225) fell sharply, closing down 50.56% at HKD 0.89, with a turnover of HKD 191 million.
Jinhai Medical Technology recently announced that the company (as the issuer) has entered into three subscription agreements with three subscribers regarding subscription matters, to subscribe for a total of 120 million subscription shares at a subscription price of HKD 1.35 per share. The subscribers are independent private investors. The subscription price of HKD 1.35 per share represents a discount of approximately 17.68% compared to the closing price of HKD 1.64 per share reported by the Stock Exchange on the date of the subscription agreement; the net proceeds from the subscription (after deducting all applicable costs and expenses related to the subscription) will be approximately HKD 160 million, with a net issue price of approximately HKD 1.34 per subscription share. The announcement stated that the group intends to use the proceeds from the subscription for potential mergers and acquisitions related to healthcare projects and/or to provide funding for the company and investments in the healthcare-related industry; R&amp;D expenses; and general working capital

06618

02591

Hong Kong stocks continued to decline today, with the Hang Seng Index closing down 0.98% at 25,270.07 points, with a turnover of HKD 312.687 billion. Despite the overall market weakness, internet healthcare stocks performed strongly, with INNOGEN-B surging 200% on its debut. Analysts believe that the short-term trend of Hong Kong stocks will focus on mid-term report performances and cost-effectiveness, expecting a volatile upward trend in the second half of the year. The Federal Reserve's interest rate cuts may stimulate liquidity in Hong Kong stocks. JD HEALTH led the blue-chip stocks, rising 11.67%

- Hong Kong stocks continued to decline, with the Hang Seng Index dropping 0.98% to 25,270.07 points, while trading volume reached HKD 312.69 billion.  
- JD Health led blue-chip gains, rising 11.67% after reporting strong mid-year results, while other sectors like internet healthcare and solar stocks showed resilience amid market fluctuations.  
- The Hong Kong Monetary Authority and Securities and Futures Commission issued a joint statement regarding recent volatility in the stablecoin market, leading to declines in related stocks.

Zhitong

JD HEALTH

INNOGEN-B

Hong Kong stocks closed (08.15) | The Hang Seng Index fell 0.98%, internet healthcare stocks rose against the trend, INNOGEN-B surged 200% on its debut